Which of the following properties cannot be linked with Marginal propensity to consume?

• Value of MPC is between 1 and infinity.
• If the entire additional income is spent i.e. ΔY = ΔC, it implies that MPS = 1
• MPC of developing countries is more than the MPC of developed countries.
• MPC of poor is less than MPC of rich because of availability of resources. Poor people do not have much resources to increase there spending as compared to that of rich.
• If we have savings in the economy then MPC can never be equal to 1.

1, 2 and 4

MPC stands for marginal propensity to consume, i.e. ratio of change in consumption expenditure to change in income. It lies between 0 and 1. If the entire additional income is spent i.e. ΔY = ΔC, it implies that MPC = 1. MPC of developing countries is more than the MPC of developed countries because the developing countries need to spend more on the basic necessities as compared to the developed countries. Similarly, the poor people have more MPC as compared to rich.